Why Harsco Shares Are Sliding Today

  • Harsco Corp HSC has updated its expected financial results for Q2 and FY22 outlook. The company expects Q2 U.S. GAAP operating loss from continuing operations of $(95) million - $(97) million (prior view for income of $17 million - $22 million).
  • Harsco expects to record a non-cash goodwill impairment charge for Clean Earth in Q2 due to lower earnings expectations and higher discount rates. The company expects goodwill impairment to be approximately $100 million.
  • The company sees Q2 Adjusted EBITDA of $47.5 million - $50 million (prior view $59 million - $64 million).
  • Due to unfavorable foreign exchange translation impacts, Harsco Environmental Q2 results are expected to be at the lower end of prior implied guidance.
  • For FY22, Harsco now expects a U.S. GAAP operating loss from continuing operations of $(51) million - $(61) million (prior view income of $81 million - $96 million) and Adjusted EBITDA of $210 million - $220 million (prior view $250 million - $265 million).
  • The company expects Harsco Environmental Adjusted EBITDA of $208 million - $214 million and Clean Earth's Adjusted EBITDA of $40 million - $44 million.
  • HSC expects to comply with its financial covenants at the end of Q2 and for the foreseeable future.
  • Price Action: HSC shares are trading lower by 9.31% at $5.26 on the last check Friday.
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